Brazil: An Investment Destination?

October 2014Business Consultant

Abstract

Brazil has been a major investment destination for many foreign companies and private investors alike during recent years. This strong interest was due to a series of national and international factors that improved Brazil’s economic and social image abroad. The economic expansion began in 1994 when the “’Plano Real” came into force, tackling high inflation and stabilizing the exchange rate by pegging the Real (BRL) to the United States Dollar (USD). In 2001, Brazil was grouped with other fast developing economies to become the B in the BRIC acronym, which gave it the potential to be part of a powerful economic bloc. In 2002, left-wing president Luiz Inácio Lula da Silva (Lula) was elected president. During his mandate he transformed social-economic politics, lifting millions of citizens out of poverty and consequently making Brazil one of the largest and fastest growing consumer markets in the world.

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Brazil: An Investment Destination?

Abstract

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